The Business Lending Center

7(a) Loan Application

The Business Lending Center is the trade name for SCEDD Development Company, a subsidiary of the Southern Colorado Economic Development District. The Business Lending Center is a non-profit organization which is licensed and regulated by the Small Business Administration (SBA) as a “Certified Development Company” or “CDC”.  As a CDC, we are authorized to package, close, and service 504 loans throughout Colorado. The Business Lending Center works hand-in-hand with the borrower and the banker to develop a financing package that works best for your small business.

SBA 7(a) Loans

7(a) loan guarantees are the most widely used loan program offered by SBA. The program name comes from section 7(a) of the Small Business Act, which authorizes SBA to provide business loans to American small businesses.

How does the 7(a) program work? 

The business applies to a lender for financing.  The lender decides if they will make the loan internally or if the application has some weaknesses which, in their opinion, will require a SBA guaranty if the loan is to be made. The guaranty which SBA provides is only available to the lender.  It assures the lender that in the event the borrower does not repay their obligation and a payment default occurs, the Government will reimburse the lender for its loss, up to the percentage of SBA's guaranty. Under this program, the borrower remains obligated for the full amount due.

Eligible Use of Funds

• Land acquisition/new construction

• Expansion/renovation of existing building(s)

• Acquisition and/or repair of machinery & equipment

• Inventory

• Working capital

• Acquisition of existing business

• Consolidation of existing debt provided it is under "unreasonable" terms and the new loan will greatly improve cash flow

Benefits of the 7(a) program

• Long term loan (up to twenty five years on real estate and seven years on working capital)

• Bank has SBA guarantee on a large portion of the loan

• Bank can make a loan to a customer who might otherwise be declined

• Strong secondary market

For additional information and guidelines for the SBA 7(a) loan program, please contact Kelly Taylor.

The complete 7(a) loan application packet can be downloaded here.

For information on the SBA 504 loan program click here.

This website is currently under construction. While some information is provided in the links, additional information can be obtained by contacting our office.

Southern Colorado Economic Development District (SCEDD)
1104 N. Main St.
Pueblo, CO  81003

(719) 545-8680 - (719) 545-9908 Fax

©SCEDD 2011